Latest News


New Safe Harbour, Early Detection of Insolvency and PPSR for Trading Trusts

11 December 2017

Safe Harbour … what does it mean? In our newsletter last quarter, we introduced the concept of safe harbour and what it was aimed to achieve. The legislation giving effect to safe harbour has now been introduced as Section 588GA of the Corporations Act 2001 (“Act”). From discussions we have had with accountants and other advisors following the intr...

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Safe Harbour Reforms and Goverment Pheonix Crackdown

27 September 2017

Genuine restructuring efforts to be rewarded by Safe Harbour Reforms – A new era in restructuring In September 2017 legislation passed through Parliament that is designed to give Australian companies a better fighting chance at avoiding insolvency and formal external administration by offering directors some relief from the harsh insolvent trading ...

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Restructuring Law Reform, ATO Debt and your Credit Rating, Public Examinations and AskInsolvency

30 June 2017

Valuable restructuring law reform being considered On 28 March 2017, the Australian Government released an exposure draft of legislation dealing with two key areas of insolvency and restructuring law reform. The legislation may come into effect by early next year. First, the proposed legislation provides directors of a company with a safe harbour f...

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Unfair Peferences, When to Cease Trading, Retail Woes and PPSR Timing Issues

30 March 2017

Unfair Preferences and Insolvency Most readers will be aware of the corporate insolvency focus of our practice but we are increasingly being engaged for our expert accountant skills in litigation and commercial matters. Our unique perspective of unfair preference and other voidable transaction claims, and of insolvency generally, gives us the abili...

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Advice with no catches, director liability for employees, security for payment, PPSR timing and managing Christmas cashflow

5 December 2016

Advice that costs you nothing We are regularly in discussions with businesses and advisers to businesses about options and issues for directors to consider when their businesses are struggling with cash flow and are under pressure from creditors. The regularity of our involvement in these discussions and the broadness of industries that we consider...

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Director Penalty Notices, Restucture, A Liquidator's Reach and the FEG Scheme

1 September 2016

Director Penalty Notice Alert Most readers will be familiar with the Director Penalty Notice (“DPN”) regime enforced by the ATO, however we are seeing an increased number of DPN’s issued after a company has entered external administration that are catching directors by surprise. The ATO comment on their web site that … “we are likely to issue a dir...

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Employee Entitlements, Trustee Companies, Special Purpose Liquidators and Restructuring

1 June 2016

Employee Entitlements For in excess of 10 years, employees have had the benefit of recourse to a Government safety net to ensure the payment of employee entitlements in the event of the insolvency of their employer. Over the years the scheme, now known as Fair Entitlements Guarantee (“FEG”), has been amended and modified. From July 2016 there are f...

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Director duties, Terminating a Winding Up, Corporate Structuring and How Long is Too Long?

24 March 2016

Guidance on director duties and insolvent trading The Federal Court in the case of Smith v Boné, in the matter of ACN 002 864 002 Pty Ltd (in liq) [2015] FCA 319 has provided some fresh judicial guidance on what can be considered the proper exercise of director duties as companies approach the point of insolvency. The facts of this case are typical...

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Company Rehabilitation, Overdrawn Director Loan Accounts, Restructuring for SME and Terminating a DOCA

4 December 2015

Insolvency laws should encourage rehabilitation Readers of our Client Update will likely be familiar with the press articles written over the past few years concerning enquiries into the conduct of certain liquidators, the effectiveness of the Australian insolvency regime and most recently, the parliamentary enquiry into the impairment of customer ...

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Heard Phillips Expands, Illegal Phoenix Activity, ASIC Wind-Ups and ATO Recovery Action

1 September 2015

Heard Phillips expands We open this quarter’s newsletter with the fantastic news that our firm, started by Andrew and Anthony eight years ago, has proudly taken the next step in its growth path. We are pleased to announce that on 1 September, long term employee and associate director Mark Lieberenz became an equity director in our firm. Mark has a ...

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Shares in a DOCA, Accountant's Duties to Liquidator, Receivership Priorities and Identifying Financial Stress

23 June 2015

Can deed administrators sell company shares? One of the benefits of a Voluntary Administration and Deed of Company Arrangement (“DOCA”) is the flexible restructuring options that can be promoted to creditors. New investors into an insolvent company restructuring through a DOCA may want to take an equity position in the company. In these cases the e...

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Insolvency & Corporate Governance, Director Personal Liability for Company Tax and Obligations of Silent Directors

30 March 2015

The Relationship of Corporate Governance to Insolvency Apart from being at least 18 years of age, there are no statutory, academic, business or required qualifications necessary to be appointed as a director of an Australian company. The ease with which an appointment can happen belies the raft of duties and obligations a director inherits when the...

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